Company / Analytics

Analytics, 13 August 2022

Walt Disney Co stock today - news and forecast

On Wednesday, August 10th, Disney reported a stronger than expected set of fiscal Q3 2022 earnings results. This sent the Disney stock on an 8% rise in pre-market trading the next day. Like most of Wall Street’s stocks, Disney stock remains down by about 22% year-to-date and by over 35% from the all-time high seen last year.

Disney’s revenue rose 26% year-over-year to $21.5 billion, thanks to the company’s theme parks and resort business making a post-pandemic comeback, effectively rising sales by about 70%. Earnings per share also came in as better than expected at $1.09 versus 96 cents expected, according to a Refinitiv survey of analysts. This represented a 36% rise versus last year.

The company’s streaming division is still making losses, however, and the company has trimmed its 2024 outlook for streaming subscribers by 15 million, with the upper end of guidance now standing at 245 million, down from a previous estimate of 260 million.

What you need to know from the earnings report

Subscriptions

Disney parks and resort business

Earnings per share and revenue

Disney’s stock performance history

Disney stock performed relatively well in the second half of 2021, reaching a peak in September. It has since seen a decline of about 35%, partly because of the Q4 FY 2021 earnings release in November. Another mini rally by the stock happened in January and February this year, but the gains vanished shortly after. The company is down 22% this year.

Wall Street’s analysts attribute the stock decline to:

Disney stock price today

As of August 12, The Walt Disney Company (DIS) was traded 121.57$ per share at market close.

Is Disney a good stock to buy?

The Disney stock still looks like a good buy. While the company continues to raise its investment in the streaming service despite making continuous losses. Disney has a much larger value chain, given its theatrical business, theme parks, merchandise, and licensing operations, unlike its streaming competitors, who mostly monetize content investment solely via monthly subscription fees.

The company’s park and hotel division seem to perform stronger than pre-pandemic levels, after soaring 40% in Q3 versus the same period in the pre-pandemic era. This is an indication to its investors that it is capable of generating sizable cash flows for the company and offsetting the large investments being made into streaming services.

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